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Wait until 1 Jan to buy your 2006 Hybrid

I just got off the phone with the IRS. The new energy bill starts 1 Jan 2006. What does that mean to a hybrid buyer? Let me explain with an example: 2006 civic hybrid, if you buy it now, you get a $2000 clean air tax DEDUCTION. If you wait until 1 Jan 2006, you get a $2100 tax CREDIT. That means its almost a triple of money for waiting 2 months.

For those people buying a Prius, the CREDIT is even better, $3150!!!!

So my advice, wait 2 months to get it or have it delievered after the first. It just makes sense.

Wait until 1 Jan to buy your 2006 Hybrid

Since you spoke with the IRS (My aren't we brave !) did they mention what the process was going to be to apply and get the Credit? Is it going to be a form you fill out and get a check back in 2006, or do you need to put it on your tax return and get the $2100 (or whatever the rebate is for your vehicle) deducted from the bottom line of your taxes and get it back in 2007?

Wait until 1 Jan to buy your 2006 Hybrid

I spoke to the IRS via phone again. The tax credit would be applied to your 2006 tax year which could mean a refund in 2007. You would just put it on your form that you fill out in 2007.

So if you owed the IRS 10k in taxes and you paid them their full amount, then you would get that tax credit back in the form of a check. But if you paid less than the 10k due the IRS, then they would apply the credit to what you owed them and give you back the difference (if any).

Wait until 1 Jan to buy your 2006 Hybrid

Someone has mentioned to me that since you only get the credit if you're among the first 60,000 to puchase the vehicle from a dealer selling hybrid vehicles, you have to actually APPLY for the credit. Now, how do they keep straight who bought what, when, if they're just going to give you the credit on your taxes in 2007? Is there a form I should have and complete at the time of purchase? (I have mine reserved too!), and most importantly, how the heck do YOU get the IRS on the phone, all I ever get is a voice mail with instructions for using their website!
10/21/05

Wait until 1 Jan to buy your 2006 Hybrid

okay, I just got off the phone with the IRS, and got nowhere. They indicate they don't have the credit information yet. They don't know how much it's going to be, and they don't know how a person is to verify that they were one of the first 60,000 people to buy from a particular manufacturer. Whattaya know!? It's another bureaucratic mess! I'm thoroughly confused and pretty much irritated. If anyone out there can clear these questions up for me, please let me know. I've tried sifting through the 1724 page document, but didn't see anything really pertinent to my question. Guess I'll keep digging.
Thanks for the help.

Wait until 1 Jan to buy your 2006 Hybrid

Hi Donna-

Check out the link to this sitehttp://hybridcars.about.com/od/news/...dtaxcredit.htm
It has the most concise and clear explanation of the hybrid car tax credit I've seen. The new energy bill is convoluted and very complex (Gee, why would the government do that ? but I think it will be worth the extra math and paperwork to get the credit.

We've already go a Ford HEV and are waiting until Jan. 2006 to get my husband his long-awaited Prius-just to get this credit.